Energy Business

Barclays Slashes Many Top Oil & Gas Players' Bullish Expectations

Devon Energy Corp. (NYSE: DVN) saw a harsh target price cut at Barclays, from $45 down to $31. The firm lowered the price target to $45 from $47 back in May, when it had an Overweight rating. That was after Devon had delivered much higher U.S. oil volumes than expected with strong Eagle Ford and Delaware Basin numbers.

Devon Energy’s shares traded down 1% at $30.80. Its consensus target price is $48.70, and its 52-week range is $29.89 to $50.69.

Whiting Petroleum Corp. (NYSE: WLL) saw its price target cut to $7 from $10 by Barclays in the call. While that is far less than the near-double the firm’s prior target implied, it still indicates close to 30% upside to the new target.

Whiting Petroleum is a top crude oil producer in North Dakota, and it also operates substantial assets in northern Colorado. The stock was last seen trading up about 0.2% at $5.35. Its consensus target price is $11.28, and the 52-week range is $5.11 to $13.39.

Encana Corp. (NYSE: ECA) saw its target price reduced to $8 from $12 in the Barclays call, giving implied downside of close to 8%. It was just on June 20 that Barclays maintained its Overweight rating for Encana after a Permian Basin field tour in which Encana announced an increase to its Permian premium inventory and type curves but reiterated 2017 guidance. Instead of 40% upside, now Barclays sees downside.

Encana was last seen trading up 0.7% at $8.64 a share. It has a consensus price target of $13.54 and a 52-week range of $7.34 to $13.85.

Other key price target cuts by Barclays were shown below.

Energen Corp. (NYSE: EGN) saw Barclays cut its target price to $54 from $63. Shares were recently trading up 0.6% at $48.20. The consensus target price is $66.19, and the 52-week range is $43.70 to $64.44.

Extraction Oil & Gas Inc. (NYSE: XOG) saw its target price cut to $19 from $24. The stock was last seen down 1.4% at $12.98. It has a 52-week range of $12.47 to $25.08.

Gulfport Energy Corp. (NASDAQ: GPOR) saw Barclays lower its price target to $19 from $24, which still signals upside from the current price. Gulfport Energy was trading relatively flat at $14.51. Its consensus target price is $23.44, and it has a 52-week range of $12.47 to $32.50.

Halcon Resources Corp. (NYSE: HK) had its price target lowered to $5 from $8, which is still above its current share price. It was last trading up 0.8% at $4.47, in a 52-week range of $3.69 to $16.90. The consensus target price is $10.00.

Parsley Energy Inc. (NYSE: PE) saw Barclays cut its price target to $32 from $38 on Thursday, still about 16% higher than the prior day’s closing price of $27.61. The stock was recently trading down 0.7% at $27.42 a share. Its consensus target price is $41.68, and its 52-week range is $25.17 to $39.82.

PDC Energy Inc. (NASDAQ: PDCE) saw its Barclays price target slashed to $59 from a prior $80, but that is still almost 40% upside from the current price. Shares were last seen p 0.7% at $42.78. The 52-week range is $40.12 to $84.88, and the consensus target price is $70.58.

RSP Permian Inc. (NYSE: RSPP) saw its target price cut to $38 from $46 by Barclays, which is still about 18% higher than its current price. RSP Permian, which is still projected by many analysts to be a big winner from lower-cost production, was trading up 0.3% at $32.17. Its consensus target price is $50.14, and its 52-week range is $29.67 to $46.92.

W&T Offshore Inc. (NYSE: WTI) is a much smaller company, with its $265 million market cap, but Barclays cut its target price to $1.50 from $2.00 in that call. If the firm is right, then W&T’s catchy WTI ticker may still have over 20% more downside ahead. Shares were last trading flat at $1.93. The 52-week range is $1.31 to $3.47, and the consensus target price is $2.00.

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